Master Kong Instant Noodles

Master Kong Holdings Co., Ltd. primarily engages in the production and sales of instant noodles, beverages, and pastries in China. The Group began producing instant noodles in 1992 and expanded its business to pastries and beverages in 1996; currently, the Group's three major product categories hold significant market positions in China's food market. According to the retail market research report by ACNielsen in December 2010, the Group's market share by sales for instant noodles, ready-to-drink tea, and packaged water was 55.8%, 51.9%, and 20.8%, respectively, firmly holding a market leadership position; diluted fruit juice ranked second with 17.5%, and sandwich biscuits ranked second with 22.7%. After years of cultivation and accumulation, "Master Kong" has become one of the most recognized brands among Chinese consumers. The Group distributes its products through its own extensive sales network nationwide. As of the end of December 2010, it had 548 sales offices and 89 warehouses to serve 6,155 distributors and 73,282 direct retail stores. The Group believes that such an extensive sales network is one of the important reasons for its products' market leadership and also facilitates the successful and efficient launch of new products. In the future, the Group will continue to focus resources on food manufacturing and distribution, and further strengthen its logistics and sales systems, aiming to establish the "world's largest Chinese-style convenient food and beverage group". The Group was listed on The Stock Exchange of Hong Kong Limited in February 1996. Its two major shareholders, Ting Hsin (Cayman Islands) Holding Corp. and Sanyo Foods Co., Ltd., hold 33.21% and 33.20% of the Company's shares, respectively. As of December 31, 2010, the Company's market value was USD 14.3 billion. Currently, the Company is included in the FTSE Asia Pacific (excluding Japan) Index and the MSCI Hong Kong Index. In 2010, "Master Kong" was named in the Forbes Asia 50 for the third consecutive year and has been ranked among the top five Taiwanese international brands for eight consecutive years, with its brand value assessed at USD 1.066 billion. Additionally, Master Kong Holdings was listed in the 5th Asian Brand 500 in 2010, and received the 2010 Best Network Reputation Enterprise Award from People's Daily Online and the 10-Year Public Welfare Innovation Award from "Digital Business Times" in 2010. These honors affirm the "Master Kong" brand and further inspire our confidence in continuous improvement. In the future, Master Kong will continue to develop the brand and strive toward becoming a top brand. Master Kong has always regarded consumer food safety as its responsibility, investing heavily in food safety technology to ensure the safety of the entire production process. Based on the total quality control concept of "from farm to table", Master Kong advocates that food safety starts from the source. Therefore, in food safety management, Master Kong places great emphasis on front-end management system design to build a virtuous cycle of quality and safety management within the Group. Furthermore, since 2010, to align with the new development stage of the enterprise, Master Kong has further strengthened raw material safety management in five key areas, including technical support, specification and standards, resource optimization, cooperation evaluation, and risk warning, based on the existing raw material safety control system, forming an effective and reasonable raw material safety defense line and building a solid and seamless barrier for food safety protection. In food safety production, the Group's consistent professionalism and focus have earned unanimous praise from the industry and consumers. In 2010, at the 8th China Food Safety Annual Conference, Master Kong won five awards, including "Top 10 in Food Safety", and also received the "National Food Quality Consumer Assured Brand" title from the China Consumer Protection Foundation.